Accurate, timely and effective billing is the foundation of medical coding and billing services that help practices manage financial risks and increase revenue.

Managing the billing processwell means it can be a money maker instead of a money drain. Accurate coding and billing that results in prompt pay from insurance companies provides revenue to cover day-to-day expenses so practices don't have to worry about meeting payroll, paying overhead costs or investing in expensive technology upgrades. It can boost profits because fewer write offs for procedures left uncovered by insurance mean increased revenues. According to a Medical Group Management Association survey, a 5 percent increase in margins could equate to as much as $4 million annually to the bottom line of an average physician practice with 100 physicians.

In addition to improving revenue, accurate billing also reduces cash flow problems. Fast reimbursement from Medicare and other payers helps practices avoid delays that hurt the business by not having enough cash on hand to provide adequate support. Delayed Medicare reimbursements can mean dropped credit card processing, late payments on loans and more.

According to a study conducted by the American Medical Association , accurate coding also helps reduce medical errors that could result in lawsuits against practices. Implementing an effective set of billing policies and procedures is part of creating a strong compliance system that protects practices against both errors and liability claims.

An article posted on National Public Radio's website talks about how many physicians serve as coder, biller and collector regardless of their lack of expertise in these areas. Many simply purchase software designed for medical billing rather than hiring outside services because they think it will produce better results than contracting with third party experts.